Vanguard Group Inc. Raises Position in Aon plc $AON

Key Points

• Vanguard Group increased its stake in Aon by 1.0% in Q4 and now owns 20,171,049 shares, representing about 9.38% of the company and roughly $7.12 billion in value.
• Aon reported Q4 EPS of $4.85 (beating estimates) on revenue of $4.30 billion (slightly below expectations), with strong profitability metrics (ROE 45.23%, net margin 21.51%); analysts’ average price target is $401.81 (Moderate Buy).
• The company raised its quarterly dividend to $0.82 (annualized $3.28, ~1.0% yield), and insiders showed mixed activity—one director bought 4,000 shares while the general counsel sold 5,040 shares.

Vanguard Group Inc. lifted its holdings in shares of Aon plc (NYSE:AON - Free Report) by 1.0% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 20,171,049 shares of the financial services provider's stock after purchasing an additional 191,658 shares during the quarter. Vanguard Group Inc. owned about 9.38% of AON worth $7,117,960,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Westside Investment Management Inc. grew its holdings in AON by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 70 shares of the financial services provider's stock valued at $25,000 after buying an additional 35 shares during the period. Wealth Watch Advisors INC purchased a new position in shares of AON during the 3rd quarter worth about $25,000. Eagle Bay Advisors LLC acquired a new stake in shares of AON in the fourth quarter worth approximately $30,000. Salomon & Ludwin LLC purchased a new stake in AON in the third quarter valued at approximately $31,000. Finally, Strive Asset Management LLC acquired a new position in AON during the third quarter worth approximately $35,000. 86.14% of the stock is currently owned by institutional investors and hedge funds.

AON Trading Up 0.1%

NYSE:AON opened at $321.47 on Monday. The business's 50-day moving average is $325.69 and its two-hundred day moving average is $338.22. The firm has a market capitalization of $68.88 billion, a PE ratio of 18.89, a price-to-earnings-growth ratio of 1.75 and a beta of 0.83. Aon plc has a 12 month low of $304.59 and a 12 month high of $381.00. The company has a debt-to-equity ratio of 1.55, a current ratio of 2.03 and a quick ratio of 2.03.

AON (NYSE:AON - Get Free Report) last issued its earnings results on Friday, January 30th. The financial services provider reported $4.85 earnings per share for the quarter, topping the consensus estimate of $4.75 by $0.10. The company had revenue of $4.30 billion during the quarter, compared to the consensus estimate of $4.38 billion. AON had a return on equity of 45.23% and a net margin of 21.51%.The company's revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.42 earnings per share. Research analysts predict that Aon plc will post 18.98 earnings per share for the current fiscal year.

AON Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 1st will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 1.0%. This is a positive change from AON's previous quarterly dividend of $0.75. The ex-dividend date of this dividend is Friday, May 1st. AON's dividend payout ratio is 17.51%.

Insider Buying and Selling

In other news, Director Lester B. Knight purchased 4,000 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was acquired at an average cost of $319.24 per share, with a total value of $1,276,960.00. Following the acquisition, the director owned 143,000 shares in the company, valued at approximately $45,651,320. This trade represents a 2.88% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, General Counsel Darren Zeidel sold 5,040 shares of AON stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $325.79, for a total transaction of $1,641,981.60. Following the sale, the general counsel directly owned 20,254 shares in the company, valued at $6,598,550.66. This trade represents a 19.93% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.10% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. The Goldman Sachs Group set a $395.00 price target on shares of AON in a report on Wednesday, January 7th. UBS Group reaffirmed a "neutral" rating and issued a $385.00 target price on shares of AON in a research report on Monday, February 2nd. Citigroup lifted their target price on AON from $402.00 to $412.00 and gave the company a "buy" rating in a report on Tuesday, February 3rd. Bank of America upgraded AON from a "neutral" rating to an "outperform" rating and dropped their price target for the stock from $398.00 to $397.00 in a research note on Friday, February 27th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of AON in a report on Tuesday, April 21st. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $401.81.

AON Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.

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